Archives: Quiz

The old Northwest Territory was composed of what is today ________. A) the Northeast B) the Northwest C) the West D) the Rocky Mountain region E) the Midwest Congressional Republicans believed that Reconstruction should _______. A) guarantee that the southern […]

How were Admiral Mahan’s naval theories connected to industrialism? A) He applied theories of industrialization to shipbuilding techniques to produce a large, new fleet of navy vessels. B) He believed that industrialism created surplus products, creating a need for merchant […]

Georgia’s actions against the Cherokee were very similar to those of South Carolina’s in regard to the “tariff of abominations” in that both hinged on _________. A) motives that were primarily patriotic B) a strict reading of the Bill of […]

What did some people in the business community find attractive about progressivism? A) Nothing. The business community opposed all forms of progressivism. B) Progressives and business owners wanted to clean up city governments and political contests. C) Progressives believed in […]

The internal slave trade in the United States ran from ________. A) the West to the upper South B) the upper South to the West C) the upper South to the lower South D) the lower South to the upper […]

The turning point of the Pacific war was the American victory at the battle of _______, which gave the United States control of the Central Pacific. A) Coral Sea B) Guadalcanal C) Midway D) Iwo Jima E) Leyte Gulf How […]

By 1960, America’s gross national product was ________ the 1940 gross national product. A) less than half B) about ten percent less than C) about the same as D) about fifty percent higher than E) more than double Sacco and […]

What was the significance of Thomas Edison’s laboratory at Menlo Park? A) It was where Edison first invented the telegraph. B) It was the first modern research laboratory. C) It was where the telephone was finally perfected. D) It was […]

The “kitchen cabinet” was ________. A) Jackson’s special staff of gourmet chefs who prepared White House meals, demonstrating his hypocrisy with regard to social deference B) a reference to the fact that the only place Jackson could consult with his […]

In New England, women ________. A) enjoyed rights and powers equal to those of men B) outnumbered men in church by two to one C) had no economic power whatsoever D) could easily divorce their husbands E) began to lobby […]

Why did the original boundaries of Maryland present a problem to colonists? A) They were vaguely defined. B) They accidentally crossed into Virginia. C) They did not extend to the coast. D) They cut through territory of the Algonquin. E) […]

John Marshall was extremely influential in interpreting ________. A) the role of the presidency B) the extent of executive privilege C) the Constitution D) Congress’ role in national politics E) the role of political parties What did the Sanitary Commission […]

Why did the Era of Good Feeling end? A) The United States could not sustain continued economic growth; financial institutions began to crumble. B) Nonpartisan cooperation could not be sustained through disagreements of how government should be involved in social […]

Compare the cultures that could be found in the New World prior to the arrival of Europeans. Why did such a great diversity exist among native groups? Describe the Spanish conquest of Central and South America. How did this conquest […]

Unlike in traditional retailing where customers are demanding and first impressions are important, e-commerce firms do not have to worry about initial communications, since bad first impressions can be overcome with follow-up contacts and high-quality Web designs. In a recent […]

To transfer ownership in a corporation, it is only necessary to transfer shares of stock. The approach called spending as much as the competition does can lead the firm to copy the mistakes of rival firms, as well as their […]

List the three basic types of acquisitions and identify the purpose of each. The primary factor in determining the location for a sawmill would probably be proximity to the market. Answer: F To be economical, a business like a sawmill […]

Risk management and insurance management are synonymous. Although the owner of a small business does not make long-term investment decisions often, capital budgeting is nonetheless important to the successful operation of the firm. Answer: T A franchise is typically attractive […]

The general environment is very narrow and includes the forces that directly impact a firm and its competitors. The forecasting process can be characterized by the point at which the process is started and the nature of the predicting variable. […]

The general environment is more narrowly defined than the industry environment because it focuses on specific segments, such as those relating to the economy, sociocultural trends, and geopolitical developments. Today, companies tend to focus on developed countries as they search […]

Making components is preferable to buying them from an outside vendor when using idle plant capacity would boost production efficiency, in-house production would protect a secret design, or the firm can reduce the cost of investment by purchasing equipment that […]

If a new venture’s projected profit margins do not substantially exceed the reported profit margins of comparable businesses, investors are likely to doubt these projections. Founders typically try to push their somewhat reluctant children into positions of responsibility more quickly […]

Accounting records can be kept in just about any form as long as they provide users with the data needed and are legally proper. Many entrepreneurs successfully grow their firms, but fail to develop an effective exit plan. Answer: T […]

Job shops in manufacturing use specialized equipment. What are the weaknesses of interviewing, and how can interviewing be used effectively in selecting employees? Answer: One of the major weaknesses of the interviewing process is that unskilled interviewers may think they […]

List the two basic ways to cope with risk in a small business and identify tools associated with each of these. Which method involves an insurance program? In a family business, there is a possibility for either conflict or harmony […]

Customer accessibility is important in locating an electrical contracting firm. Incubator organizations can provide advice on structuring a new business. Answer: T If they are based in the owner’s home, a business must conform to local zoning ordinances. Answer: T […]

Studies have shown that almost all small business managers carry sufficient insurance protection. A major weakness of a family business is that it has greater difficulty than a nonfamily business in focusing on long-run decision making. Answer: F A family […]

Franchising is typically defined as a marketing system revolving around a two-party legal agreement whereby a franchisor is granted the privilege to conduct business as an individual owner according to the methods and terms specified by the franchisee. Personal selling […]

It is now illegal for employers to arrange for background investigations of job applicants. Holding stock issued pursuant to Section 1244 of the Internal Revenue Code (i.e., Section 1244 stock) offers no financial protection against corporate failure. Answer: F If […]

Distinguish between artisan entrepreneurs and opportunistic entrepreneurs. Describe the distinctive features of each. Both wholesalers and equipment manufacturers/suppliers can be used as sources of funds. Answer: T A salesperson can help to build goodwill by understanding the customer’s point of […]

Just-in-time inventory systems note that firms should select suppliers immediately before they need to use the inputs those vendors will provide. Income-tax cheating by small business is sufficiently widespread to be recognized as a general problem. Answer: T An evoked […]

A business plan helps the entrepreneur anticipate the different situations that may occur. E-mail promotion provides a low-cost way to pinpoint customers and achieve response rates higher than those for banner ads. Answer: T The accounting system of a small […]

How can a successfully growing firm fall into a “growth trap”? Buying or developing CRM software leads to higher customer retention. Answer: F Explain and illustrate the nature of the operations process for production of both products and services. Include […]

Direct selling practices such as pyramid schemes and front-loading are unethical. Though less recognized franchises exist, these rarely have the success rate of high profile, large franchisors, such as McDonald’s. Answer: F Many of these less recognized franchises are quite […]

Describe the role trade intermediaries play in assisting small businesses that choose to go global. Identify the types of trade intermediaries that are most useful to small businesses. Three shortcomings of franchising include cost, restrictions on operations, and loss of […]

Product liability could be classified as a source of tort liability. Valuing a company is an easy task that results in a precise figure. Answer: F Valuing a business is neither easy nor exact, even under the best of circumstances. […]

“Me, too” strategies are used by very few new ventures. Computer software packages can help a small business manager with some aspects of an accounting system but are generally not available to help prepare income statements or balance sheets. Answer: […]

What are the principles that govern the firm’s financing? Calculations of net present value ignore the time value of money. Answer: F Three primary rewards of entrepreneurship are thought to be profit, independence, and personal fulfillment. Answer: Answer: Several principles […]

Many new businesses are formed as a result of the entrepreneur’s previous work experience, through which he or she sees ways to improve or modify a product. The entrepreneurs are usually drawn to opportunities that others reject because they misread […]

One of the most important means of sharing business risks is a. preventive maintenance. b. insurance. c. a system of internal checks or control. d. good management. Though it is sometimes expensive to make socially responsible choices, a. small businesses […]

The parent-founder of a family business is contemplating the potential conflict between family concerns and business interests. He concludes that a primary family concern is a. nurture. b. profitability. c. survival. d. avoidance of excessive business debt. A primary consideration […]

With a foreign licensing strategy, the company purchasing the right to manufacture and sell a product in overseas markets is called the a. royalty receiver. b. licensor. c. licensee. d. license initiator. The big picture includes all of the following […]

In seeking personnel for key positions, small firms sometimes turn to recruiting specialists called a. temporary help agencies. b. leasing companies. c. attorneys. d. headhunters. Trade between the United States and Mexico has increased since the enactment of the North […]

Any person capable of ________ may legally become a business partner. a. assenting to liability b. contracting c. contributing capital d. having a claim on assets Fine Framings, a small framing shop, uses markup pricing to arrive at a final […]

The executive summary in a business plan should come a. at the beginning. b. at the end. c. following the finance section. d. following the marketing section. Pure risk, as stated in the textbook, is a. a chance all entrepreneurs […]

Excess cash should be a. invested. b. used to purchase assets. c. used to pay dividends. d. kept on hand. The primary advantage an entrepreneur gains by leasing rather than buying facilities is a. receipt of an investment tax credit. […]

Altering the financial records of a firm such that the records do not reflect the true conditional of the firm is a. “gilding the lilies.” b. “plugging the numbers.” c. “cooking the books.” d. “creative accounting.” Profit-sharing plans a. provide […]

Observations about the external environment and organizational potentials can be brought together by means of a. an alignment strategy. b. the in-and-out assessment. c. a SWOT analysis. d. common sense critique. Which of the following best defines a partnership? a. […]

Driving as safely as possible is an example of a. loss prevention. b. loss avoidance. c. loss reduction. d. loss control Ideas Unlimited is a recently established consulting firm that specializes in providing retailers with information about regional sales trends. […]

The return on the owner’s investment (equity) is a better measure of performance than a. the return on assets ratio. b. the current ratio. c. the quick ratio. d. the absolute dollar amount of income. The value of a depreciable […]